Why is an exit strategy so important?
Discussions About Creating An Exit Strategy
Here are some of comments we have shared with some entrepreneurs. Your exit strategy is important because it helps you define success in business. When entrepreneurs have not thought through an exit strategy, it may be an indicator that they are not focused on the eventual transition of the venture.
There is a great quote from William D. Bygrave, professor of entrepreneurship: “What George Bernard Shaw said about love affairs is also apt for business: Any fool can start one, it takes a genius to end one successfully.”
Think of your exit strategy like the North Star guiding Columbus across the Atlantic to America, your definition of success should be used as your strategic heading. It launches you off in the right direction, helps keep you on track, but also illuminates the way when you feel uncertain or feel you are off track.
We have found that every stage of the entrepreneurial life cycle (from launch to exit) becomes clearer and easier to take if you know precisely what you plan to do with the business in the end. Creating an exit strategy is an enormously complicated and difficult task; that can never begin too early.
Stephen Covey writes in The Seven Habits of Highly Effective People that one of the keys to being effective in life is “beginning with the end in mind.” Although Covey is speaking of one’s personal life, the statement also rings true with respect to the entrepreneurial life cycle.